07:51 AM EDT, 09/05/2025 (MT Newswires) -- Elemental Altus Royalties ( ELEMF ) said overnight Thursday it will acquire EMX Royalty ( EMX ) to form Elemental Royalty, a mid-tier gold-focused company.

The merged entity will have 16 producing royalties, contributing to projected adjusted revenue of US$80 million in 2026. It also plans to pursue a US listing.

As part of the deal, Tether Investments will buy 75 million Elemental Altus shares at $1.84 each in a $100 million placement.

Elemental Altus will also consolidate its shares on a 10-for-1 basis.

EMX shareholders will receive 0.2822 Elemental Altus shares per EMX share. On completion of the merger and Tether financing, Elemental Altus shareholders will own 51% of the new company and former EMX shareholders 49%, on a fully diluted basis, with an implied market capitalization of $933 million.

"The combination of two business that have each delivered over 17% compound annual growth rates in share price since their inception creates an enlarged company that is exceptionally well-placed to continue to grow in an accretive manner for shareholders," said Elemental chief executive Frederick Bell.

"The support from Tether in the form of a $100 million placement as well as the existing cashflow generation, provides the ability to pursue further valuable growth through acquisitions of the best opportunities in the sector. Both Elemental Altus' and EMX's shareholders will benefit from our cornerstone assets, greater scale, diversification, growth profile and trading liquidity."

EMX Royalty ( EMX ) is up $0.03, to $3.85 in pre-market trading. Elemental Altus closed down $0.01, to $2.05, on the TSX Venture Exchange on Thursday.